Forex trading house advertising 3% per month

[tabnloz]

Hi All,

In trying to research about forex trading, and from hearing some stories from friends, are trading houses that market themselves as returning around 3% per month legit?

Is this kind of return common in the industry or is it the sign of a scam? I can see large institutions possibly acheiving this, however in the era of ZIRP, wouldn't this just be a segment of the market that even the Average Joe would be all over (considering an annualised 36% ROI beats the hell out of property)

Appreciate any replies.

 

[skyQuake]

Hi All,

In trying to research about forex trading, and from hearing some stories from friends, are trading houses that market themselves as returning around 3% per month legit?

Is this kind of return common in the industry or is it the sign of a scam? I can see large institutions possibly acheiving this, however in the era of ZIRP, wouldn't this just be a segment of the market that even the Average Joe would be all over (considering an annualised 36% ROI beats the hell out of property)

Appreciate any replies.

Consider this: If you are a trading house making 42.6% p.a. (that 3% per month compounding adds up), would you share your goose that lays golden eggs with anyone?

 

[pixel]

As more baby boomers enter retirement and bemoan the piddly interest rates, we see a tidal wave of "Financial Eggspurts" trying to cash in on the desire to get more out of their Super and private nest eggs. The overwhelming majority of those offers are scams. Promises and glowing references are easily published, on websites, on paper, and especially in unsolicited phone calls or emails.
The financial watchdogs are desperately under-funded, and even if someone's website is shut down, it takes only minutes to create a new one with the same promises.

It's Buyer Beware, and I won't touch any product that promises consistent interest above 10% p.a.

 

[tabnloz]

Consider this: If you are a trading house making 42.6% p.a. (that 3% per month compounding adds up), would you share your goose that lays golden eggs with anyone?

I believe the deal is something like this like: they offer layers of investments from say 1 - 7% and attempt to return you that on your investment each month on the proviso they keep anything over and above what they return on your level (ie if u are down for 1% and they make 5% on that month, they keep the extra four).

Thing is, a number of people I know have done it for a number of years and have not had a problem and have made bucket loads. But, instinct smells like a ponzi scheme to me although I am not familiar with forex houses.

 

[pixel]

I believe the deal is something like this like: they offer layers of investments from say 1 - 7% and attempt to return you that on your investment each month on the proviso they keep anything over and above what they return on your level (ie if u are down for 1% and they make 5% on that month, they keep the extra four).

Thing is, a number of people I know have done it for a number of years and have not had a problem and have made bucket loads. But, instinct smells like a ponzi scheme to me although I am not familiar with forex houses.

Do they guarantee the x% you signed up for? I bet the answer is No.
So, then you need to ask, what happens if I'm down 10% in that month?
While they have you on the baited hook, they will brush over it and assure you it'll never happen.
When they've got you signed up, their answer will be "Tough luck! Stick with us, next month will be better." Or there won't be an answer because they have left the country - with your money.

 

[skc]

Thing is, a number of people I know have done it for a number of years and have not had a problem and have made bucket loads. But, instinct smells like a ponzi scheme to me although I am not familiar with forex houses.

Un-know these people.

 

[tabnloz]

Do they guarantee the x% you signed up for? I bet the answer is No.
So, then you need to ask, what happens if I'm down 10% in that month?
While they have you on the baited hook, they will brush over it and assure you it'll never happen.
When they've got you signed up, their answer will be "Tough luck! Stick with us, next month will be better." Or there won't be an answer because they have left the country - with your money.

No, no guarantees, however I've been told they've only had a few months where the payments were slightly down in nearly three years. This is from people I've known for over 20 years.

However, I'm skeptical. They got in early; perhaps its a ponzi?

What would be a resource out there that can verify the trading accounts/behavior/reporting etc of a company?

 

[cynic]

No, no guarantees, however I've been told they've only had a few months where the payments were slightly down in nearly three years. This is from people I've known for over 20 years.

However, I'm skeptical. They got in early; perhaps its a ponzi?

What would be a resource out there that can verify the trading accounts/behavior/reporting etc of a company?

I think you are right to remain skeptical and to keep the ponzi possibility in mind. Whatever is going on here, whether it be genuine or fraudulent, it most certainly does not appear to be sustainable, particularly when it involves trading of financial instruments from whence the profit is primarily derived from a counter party's losses. In the unlikely event that that counter party doesn't turn out to be you, it still pays to consider the questions of where's the profit coming from and how long it can continue.

My personal opinion is that the odds are stacked heavily against the long term financial success of anyone receptive to offers that fall within the "too good to be true" and "all my dreams are now achievable" categories.

Even if such a rare species of altruistic financial genii did exist, there is a far greater likelihood that one will be taken for many expensive rides, courtesy of the multitudes of rampant scam artists, long before ever encountering a genuine offering.

 

[minwa]

Have you got a link or company name ?

 

[Timothy R]

yeah if you know what you are doing! knowledge is key!

Hi All,

In trying to research about forex trading, and from hearing some stories from friends, are trading houses that market themselves as returning around 3% per month legit?

Is this kind of return common in the industry or is it the sign of a scam? I can see large institutions possibly acheiving this, however in the era of ZIRP, wouldn't this just be a segment of the market that even the Average Joe would be all over (considering an annualised 36% ROI beats the hell out of property)

Appreciate any replies.